Prepare journal entries from 2020 to 2023.
Q: A large company in Australia, called Alex Ltd, supplied $22,000 (GST Inclusive) worth of products to…
A: On 01.08.2019, Alex Ltd. supplied goods = $22000 inclusive of GST to Beta Pty Ltd. Beta paid this…
Q: SM Department Store sells gift certificates, redeemable for store merchandise that expires one year…
A: Unearned revenue on December 31, 2021 = Unearned revenue at December 31, 2020 + sales for 2021 -…
Q: SG Inc. has a branch in Boracay established on April 1, 2020. During the year 2020, SG shipped…
A: Branch accounting is a book keeping system in which separate accounts are kept for each…
Q: MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points…
A: In the given question it is given that in 2019 the entity issued 50,000 award credits. The fair…
Q: Erika Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: Answer: Product Sales = P7,000,000 Points - Stand-alone Selling Price = P1,000,000 (Assumption: It…
Q: PEANUTS Company, a grocery retailer operates a customer loyalty program. It grants program members…
A: In the case of accounting for a customer loyalty programme, a portion of sales from the total sales…
Q: Entity A is a manufacturer of consumer goods. On 1 January 2020, Entity A entered into a one-year…
A: note: The answer has been prepared with the assumption that the amounts are not received and only…
Q: During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each…
A: Total estimated coupons that should be redeemed = 50,000 boxes ×80% = 40,000
Q: On January 1, 2018, an entity enters into a contract to transfer Products C and D to a customer in…
A: Contract liability: When the entity obtains a certain amount of consideration for the goods or…
Q: Indicate the income statement and balance sheet reporting by Pronghorn at October 31, 2020, of the…
A: Sales returns and allowances means value of goods that are being returned by customer or allowance…
Q: T: | Bank | Payable | Receivable | Interest expense | Interest revenue | Inventory | PPE | | Asset…
A: Journal: Journal is considered as a book of original entry because all the transactions that have…
Q: ABC made the following supplies for sale in January 2020: ABC Juice Limited manufactures and sells…
A: The computation of VAT Payable/Refundable is shown below -
Q: An entity, a grocery retailer, operates a customer loyalty program. The entity grants program…
A: revenue during 2022 Particulars Amount Sales from stand alone selling price 7000000 Add:…
Q: In 2020, HP Company transferred goods to a retailer on consignment. The goods cost P450,000 and…
A: Consignment Account The basic factor which are included in the consignment business goods send by…
Q: Baker Company sold consumer products that are packaged in boxes. The entity offered an unbreakable…
A: Formula: Estimated redemption units = Sales units x redemption percentage Multiplying sales units…
Q: A large company in Australia, called Alex Ltd, supplied $22,000 (GST Inclusive) worth of products to…
A: Given, Alex Ltd. is a GST registered entity with ATO. And Beta is not registered for GST. Beta is…
Q: WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one…
A: Unearned revenues are those revenues which are received in advance by the business but that will be…
Q: The following information relates to Puregold Price Club Inc. (PPCI) for the year 2022. PPCI has a…
A: Gift certificates are a liability to the company. Basically, the company owes the amount on the gift…
Q: William Company operates a customer loyalty program. T entity grants loyalty points for goods…
A: Revenue in another terms is an income.Revenue is generated is through business through profits.
Q: PEANUTS Company, a grocery retailer operates a customer loyalty program. It grants program members…
A: Company generally provides loyalty program to its customers in which it grants loyalty points to its…
Q: ABC Company, a department store operates a customer loyalty program.The entity grants program…
A: Given data, Sales =P10,000,000 Fair value of products sold =P9,000,000 Fair value of reward points…
Q: mith Corp. sells goods to Magnus for $500,000, payment due in 18 months after the goods are…
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…
Q: Familiar Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: Revenue - Revenue is referred to as the money which is generated from business activities and it…
Q: XZ Company, a grocery retailer operates a customer loyalty program. It grants program members…
A: In a customer loyalty program a company grants its members loyalty points on the spending the amount…
Q: How much is the Unearned Revenue for Unredeemed Premiums?
A: When the connected items are sold, the cost of a premium, such as the unbreakable glass, in this…
Q: Erika Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: To begin, keeping detailed records of your transactions helps to organize the data in your business.…
Q: James Company has an arrangement with with Jorge Company that operates a customer loyalty program.…
A: Customer loyalty programs are accounted for as per IFRS 15. Such a program is used by a company to…
Q: Meyer & Smith is a full-service technology company. They provide equipment, installation services as…
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…
Q: On September 1, 2021, Laguna Grill determined that it will need to purchase 100,000 kilos of tuna…
A: A forward contract means the contract which is used to protect against the price increase in the…
Q: Azzan Al Badi Trading is a supplier of electrical products to industrial, commercial and residential…
A: Realization concept of revenue recognition says that revenue should only be recognized when it is…
Q: ABC Juice Limited manufactures and sells juice locally in St. Lucia and in the Caribbean. The…
A: VAT (Value Added Tax) reflects the tax rate applied to goods and services. The standard rate of VAT…
Q: EM Company, a grocery retailer, operates a customer loyalty program. The entity grants program…
A: Loyalty points Revenue Recognition - Under the same amount allocated from the loyalty rewards is…
Q: During 2020, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each…
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
Q: ABC Juice Limited manufactures and sells juice locally in St. Lucia and in the Caribbean. The…
A: The computation of VAT Payable/Refundable is shown below: Sales VAT Computation VAT Amount…
Q: 11. PEANUTS Company, a grocery retailer operates a customer loyalty program. It grants program…
A: • In the case of accounting for a customer loyalty programme, a portion of sales from the total…
Q: Wildhorse Manufacturing Inc. is a local manufacturing company. Rather than sell its product…
A: Following are the requisite journal entries
Q: According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in…
A: Revenue is an accrual accounting principle used to ascertain particular events under which income is…
Q: MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points…
A: In order to determine the revenue earned in 2020 the award credit in 2020 is required to be…
Q: The following information relates to Puregold Price Club Inc. (PPCI) for the year 2022. PPCI has a…
A: Unearned Revenue - Unearned Revenue is the revenue against which payment has been received by…
Q: An entity sells a product to a customer for P121 that is payable 24 months after delivery. The…
A: As per the standards relating to Revenue from Contracts with customers, transaction price should be…
Q: Mercado Company has an arrangement with Kian Company that operates a customer loyalty program. The…
A: Selling price refers to the amount that a customer will pay in order to buy a particular product. It…
Q: 5. MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty…
A: Total award credit 50,000 Fair value of award credits P20,00,000…
Q: MOA sells gift cards that are redeemable only at its stores. The company's policy is to record the…
A: Outstanding obligations or liabilities are those dues or obligations which are related with current…
Q: Besik Inc. operates a customer loyalty program. The entity grants loyalty points for goods…
A: SOLUTION WORKING NOTE SALES 8500000 POINTS 1500000 TOTAL 1000000.
Q: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from…
A: Actual sale of goods sold to customer on stand alone basis is: =P12,000,000 - P3,000,000 =P9,000,000…
Q: . Erika Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: To begin with, keeping detailed records of your transactions will aid in the organization of the…
Q: During 2020, Univ Company signed a non-cancellable contract with Univy to purchase 1,000 tons of…
A: Here in this question we are required to determine how much gain from recovery of loss needs to…
Q: A large company in Australia, called Alex Ltd, supplied $22,000 (GST Inclusive) worth of products to…
A: Goods and services tax (GST) is an indirect tax that is levied by the government on the supply of…
Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased.
The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date.
During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed.
The fair value of the award credits granted is reliably measured at P2,000,000.
In 2020, the entity sold goods to customers for a total consideration of P9,000,000 based on stand-alone selling price.
The award credits redeemed and the total award credits expected to be redeemed each year are as follows:
Redeemed Expected to be
Redeemed
2020 15,000 80%
2021 7,950 85%
2022 2,550 85%
2023 15,000 90%
Required:
Prepare
Step by step
Solved in 5 steps with 5 images
- Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85%…Cinnamon Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 150,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P3,000,000. In 2019, the entity sold goods to customers for a total consideration of P12,000,0000 based on a standalone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from points for 2019? What is the revenue from points for 2020?Familiar Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 450,000 award credits and expects that 40% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P9,000,000. In 2019, the entity sold goods to customers for a total consideration of P36,000,0000 based on a stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 135,000 40% 2020 67,500 45% What is the revenue from points for 2019? P1,350,000 P3,600,000 P1,080,000 P3,375,000 What is the revenue from points for 2020?…
- Besik Inc. operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. During 2020, the entity issued 25,000 award credits and expects that 85% of these shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,500,000. In 2020, the entity sold goods to customers for a total consideration of P 8,500,000 based on stand-alone selling price. On Dec. 31, 2020, 10,000 award credits have been redeemed. In 2021, the management revised expectations and expects 80% of the award credits to be redeemed. In 2021, 5,000 award credits redeemed. What is the revenue earned from award credits for 2021? *a. P 956,250b. P 600,000c. P 356,250d. P 318,750MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 2020? a. P600,000 b. P750,000 c. P330,000 d. P318,000MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 2020?
- 3. Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023.Zilong Company operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on purchases. Program members can redeem the points for further purchases. The points have no expiry date. During 2021 the entity granted 80,000 points. Management expects that 90% of these points will be redeemed. The fair value of each loyalty point is estimated at P20. The sales during 2021 amounted to P9,000,000 including loyalty points. On December 31, 2021, 28,800 points have been redeemed in exchange for purchases. In 2022 the management revised its expectations and expects 85% of the points to be redeemed altogether. During 2022, the entity redeemed 12,000 points. What is the revenue earned from loyalty points for the year ended December 31, 2021?James Company has an arrangement with with Jorge Company that operates a customer loyalty program. The entity grants loyalty points of Jorge Company when they spend a specified amount on purchases. Program members can redeem their points with Jorge Company. The points have no expiry date. During 2020, the customers earned 60,000 points. The stand-alone selling price of each loyalty point is estimated at P20. The sales during 2020 amounted to P6,800,000 based on stand-alone selling price. According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in exchange for purchases. In 2021, customers have redeemed 9,000 points. How much is the revenue to be recognized by James in 2020?
- James Company has an arrangement with with Jorge Company that operates a customer loyalty program. The entity grants loyalty points of Jorge Company when they spend a specified amount on purchases. Program members can redeem their points with Jorge Company. The points have no expiry date. During 2020, the customers earned 60,000 points. The stand-alone selling price of each loyalty point is estimated at P20. The sales during 2020 amounted to P6,800,000 based on stand-alone selling price. According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in exchange for purchases. In 2021, customers have redeemed 9,000 points. How much is the initial unearned customer loyalty points to be recognized by James?ABC Company, a department store operates a customer loyalty program.The entity grants program members loyalty points when they spend a specified amount on their products. Program members can redeem the points for future purchases.The points have no expiry date. During 2020, the sales amounted to P 10,000,000 and the entity grants 5 points for every P 100 purchase. Management expects that only 70% of the points will be redeemed. Fair values of products sold and the reward points for the year were P 9,000,000 and P 1,000,000, respectively.As of December 31, 2020, half of the total points granted have already been redeemed. In 2021, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2021, there is a redemption of 25% of the remaining points.What amount should be reported as revenue earned from loyalty points in 2020?To input answers, kindly follow the sample format below(no peso sign, with comma, no space):ex. 100,000Failure to follow the…ABC Company, a department store operates a customer loyalty program.The entity grants program members loyalty points when they spend a specified amount on their products. Program members can redeem the points for future purchases.The points have no expiry date. During 2020, the sales amounted to P 10,000,000 and the entity grants 5 points for every P 100 purchase. Management expects that only 70% of the points will be redeemed. Fair values of products sold and the reward points for the year were P 9,000,000 and P 1,000,000, respectively.As of December 31, 2020, half of the total points granted have already been redeemed. In 2021, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2021, there is a redemption of 25% of the remaining points.What amount should be reported as revenue earned from loyalty points in 2020?
